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FirstService
(TSX:FSV)
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Rating:56Neutral
Price Target:
C$200.00
▲(2.32% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by mixed fundamentals: consistent free cash flow and steady margins are offset by a sharp TTM revenue decline and reduced balance-sheet visibility. The earnings call supports a moderately positive outlook with continued cash generation and buybacks, but technicals are weak (below key moving averages) and valuation is demanding (high P/E with low yield).
Positive Factors
Recurring Residential Services
Recurring community-management contracts and franchise royalties provide a steadier revenue base than purely project-based work. This supports customer retention, planning visibility and resilience as the company expands its residential footprint.
Negative Factors
Sharp TTM Revenue Decline
The sharp TTM revenue contraction materially weakens confidence in near-term consistency and makes the historical growth trend less dependable. Sustained recovery will require improvement across weaker service categories and reliable project conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Residential Services
Recurring community-management contracts and franchise royalties provide a steadier revenue base than purely project-based work. This supports customer retention, planning visibility and resilience as the company expands its residential footprint.
Read all positive factors
FirstService (FSV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.12B
Dividend Yield0.81%
Average Volume (3M)274.94K
Price to Earnings (P/E)41.2
Beta (1Y)0.96
Revenue Growth2.20%
EPS Growth13.07%
CountryCA
Employees31,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)3.51
Shares Outstanding45,722,485
10 Day Avg. Volume516,808
30 Day Avg. Volume274,943
Financial Highlights & Ratios
PEG Ratio5.50
Price to Book (P/B)5.15
Price to Sales (P/S)1.27
P/FCF Ratio21.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$242.40Price Target Upside24.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)8.61
Revenue Forecast (FY)C$8.04B
FirstService Business Overview & Revenue Model
Company Description
FirstService Corporation, headquartered in Toronto, Canada, and established in 1989, provides a comprehensive array of property management and essential property services to both residential and commercial clients across the United States and Cana...
How the Company Makes Money
FirstService makes money mainly by delivering recurring and transactional property services through two operating segments.
1) FirstService Residential (property management)
- Management and service fees: The core revenue stream is recurring fees...
FirstService Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call portrayed a company executing well on cash generation, share repurchases, targeted tuck-in M&A and platform investments while showing solid performance in Residential and Century Fire. Headwinds are concentrated in roofing (notably Las Vegas and SW Florida) and near-term restoration revenue conversion timing remains uncertain. Margins are broadly stable with modest improvement in some businesses but slight YoY compression at the consolidated H1 level. Management provided a constructive but cautious outlook for H2 with low-single-digit consolidated growth and mid-single-digit EBITDA growth for the year.Positive Updates
Consolidated Revenue and Profit Growth
Q2 consolidated revenues of $1.45B, up 2% YoY; adjusted EBITDA $161.7M, up 3% YoY; consolidated EBITDA margin 11.2%, up 10 bps YoY; adjusted EPS $1.75, up 2% YoY.
Negative Updates
Roofing Segment Weakness
Q2 roofing revenues down ~6% reported and ~10% organically; market described as stubbornly weak and ultra-competitive (notably Las Vegas and Southwest Florida); management expects Q3 roofing to be down slightly with organic growth off mid-single-digits.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Profit Growth
Q2 consolidated revenues of $1.45B, up 2% YoY; adjusted EBITDA $161.7M, up 3% YoY; consolidated EBITDA margin 11.2%, up 10 bps YoY; adjusted EPS $1.75, up 2% YoY.
Read all positive updates
Company Guidance
Management reiterated modest growth and margin improvement while flagging segment differences: Q2 results were $1.45B revenue (+2% y/y, roughly half organic), adjusted EBITDA $161.7M (+3%), adjusted EPS $1.75 (+2%) and a consolidated margin of 11.2% (+10 bps); H1 revenues were $2.77B (+4%), H1 adjusted EBITDA $267M (+3%, 9.7% margin, -10 bps) and H1 adjusted EPS $2.69. For the back half they expect Q3 revenue and EBITDA growth similar to Q2 (low single digits), full‑year revenue growth similar to or modestly better than YTD and mid‑single‑digit annual EBITDA growth; by division they forecast FirstService Residential mid‑single‑digit top‑line growth with modest margin improvement (Q2 residential $617M, +4%/+5% organic; EBITDA $69M, +6%, 11.2% margin), FirstService Brands mid‑single‑digit H2 revenue growth (Q2 brands $832M, EBITDA $96M, +1%, 11.5% margin) with restoration ~5% YoY growth in H2, roofing to be down slightly in Q3 after Q2 reported -6% (-10% organic) with mid‑single‑digit organic declines expected, Century Fire expecting 10%+ YoY growth in Q3/Q4, and home services slightly up. On cash and capital allocation they reported Q2 operating cash flow $112M pre‑WC ($130M post‑WC), YTD cash flow ~ $220M, Q2 capex >$30M (YTD $60M; FY capex ~ $130M vs $140M target), ~$40M of tuck‑ins in the quarter, repurchased >1.8M shares for ~ $250M at an average $135.91, net debt/EBITDA ~1.8x (from 1.5x) and >$800M of cash/undrawn capacity, saying they can continue opportunistic buybacks while pursuing mid‑teens return‑targeted tuck‑in M&A.FirstService Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.54B | 5.59B | 5.22B | 4.33B | 3.75B | 3.25B |
| Gross Profit | 1.35B | 1.50B | 1.72B | 1.39B | 1.18B | 1.05B |
| EBITDA | 536.26M | 544.78M | 506.02M | 378.64M | 333.69M | 312.63M |
| Net Income | 160.53M | 147.59M | 134.38M | 100.39M | 121.07M | 135.21M |
Balance Sheet | ||||||
| Total Assets | 4.36B | 4.28B | 4.19B | 3.63B | 2.77B | 2.51B |
| Cash, Cash Equivalents and Short-Term Investments | 200.81M | 179.76M | 227.60M | 187.62M | 136.22M | 165.66M |
| Total Debt | 1.56B | 1.38B | 1.57B | 1.42B | 952.16M | 823.19M |
| Total Liabilities | 2.64B | 2.42B | 2.56B | 2.27B | 1.63B | 1.49B |
| Stockholders Equity | 1.22B | 1.37B | 1.19B | 1.02B | 907.47M | 799.72M |
Cash Flow | ||||||
| Free Cash Flow | 334.98M | 323.81M | 172.88M | 187.63M | 28.28M | 109.06M |
| Operating Cash Flow | 459.39M | 453.75M | 285.67M | 280.36M | 105.89M | 167.27M |
| Investing Cash Flow | -240.77M | -283.92M | -323.70M | -646.33M | -160.80M | -206.32M |
| Financing Cash Flow | -243.76M | -233.51M | 74.41M | 413.94M | 18.78M | 24.43M |
FirstService Technical Analysis
Positive
195.46
Price Trends
199.82
Negative
194.80
Positive
201.71
Negative
Market Momentum
-0.85
Positive
53.03
Neutral
50.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FSV, the sentiment is Positive. The current price of 195.46 is below the 20-day moving average (MA) of 197.17, below the 50-day MA of 199.82, and below the 200-day MA of 201.71, indicating a neutral trend. The MACD of -0.85 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FSV.
FirstService Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$1.66B | -78.83 | -5.13% | 1.24% | -7.33% | 54.42% | |
66 Neutral | C$1.56B | 8.97 | 9.49% | 0.17% | 5.14% | -43.08% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | C$1.64B | -108.23 | -16.05% | 0.27% | 10.21% | 50.83% | |
60 Neutral | C$7.00B | 45.84 | 7.23% | 0.31% | 14.17% | -4.41% | |
56 Neutral | C$9.12B | 41.17 | 12.00% | 0.81% | 2.20% | 13.07% | |
46 Neutral | C$32.06M | 13.52 | -2.50% | 39.94% | -6.17% | ― |
* Real Estate Sector Average
TSE:FSV
FirstService
199.56
-83.08
-29.39%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.